HSBC plans contingent income barrier autocallables tied to Halliburton

By Toni Weeks

San Luis Obispo, Calif., July 24 – HSBC USA Inc. plans to price autocallable contingent income barrier notes due Aug. 5, 2016 linked to the common stock of Halliburton Co., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 9% to 11% per year if the stock closes at or above the barrier level, 80% of the initial share price, on the determination date for that quarter. The exact contingent coupon rate will be set at pricing.

The notes will be automatically called at par if the stock closes at or above the initial share price on any quarterly call observation date beginning Nov. 2.

If the notes are not called and Halliburton stock finishes at or above the 80% barrier level, the payout at maturity will be par. Otherwise, the payout will be a number of Halliburton shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. is the agent.

The notes will price July 31 and settle Aug. 5.

The Cusip number is 40433B5R5.

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